Too many counterpoints to quote, but I will do my best to paraphrase and respond:
"Torrents themselves aren't illegal, though content may be."
True, and this also falls back to the Napster/MP3 standard: The MP3 may be just "data", but if the "data" happens to be copyrighted, then it is illegal to own/play/distribute that MP3. I would believe that, based on that standard, it wouldn't be completely out of the realm of possibility to think a future trial could base the entire case around "Intended Use" and "Actual Use"... the result? A digital prohibition of sorts... similar to how some illegal drugs or things like higher-powered weapons can become prohibited from use outside of very strict license-enabled individuals... if at all.
"You can't have an illegal format, that's like wanting to ban .jpg's for copyrighted material."
It has been done, actually... and in fact, I remember a few years back great effort was made towards banning the .gif file format, as *that* format was copyrighted and they didn't like the fact people were using it so freely. Additionally, Playstation 3 users feel the bite when they play Little Big Planet online and simply "theme" a level around existing IPs and so on, making it virtually impossible to create "fan"-themed stages and content. City of Heroes also had this backlash, as it was possible to create licensed Marvel Comics characters... or at least, characters that resembled them.
"It's only the owners of The Pirate Bay who have been found guilty, not all the users."
True too, but I think this rolls back onto the "Intended/Actual Use" thing I mentioned before. The result of this case found the guys guilty because they basically "facilitated" illegal file sharing... but it's only a matter of time before someone remembers that the ACTUAL file transfers occur between users: Therefore giving cause for the police to crackdown on users who, in turn, help facilitate torrent sites by factually delivering content, whereas the Torrent Sites merely help users "find each other".
It's not far fetched, no... in fact, the stories of RIAA/MPAA suing grandmas, children, etc for file sharing pop up all the time: And with frightening high success rates. Given enough successful prosecutions against users who DO promote illegal file sharing, a motion could be filed to ban the use of .torrent files, enforcible in the same way it's illegal to ask for child pornography online: Just because it's *virtual* data, doesn't make it less illegal to own/distribute and it *would* be illegal to have/share.
"Even if Torrents are made to be illegal, other methods to pirate software will surface."
Damn right, and when it does I'll be there.